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First fully electronic JSCC-cleared swap trade is executed on Tradeweb

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The first electronically-traded and JSCC-cleared yen swap transaction by a Japanese bank has been executed by Tradeweb.

Bank of Tokyo-Mitsubishi UFJ Limited traded with Deutsche Bank and used the Tradeweb “intention to clear” facility to indicate that it would send the trade to the Japan Securities Clearing Corporation (JSCC) for clearing.
Although electronic trading of yen swaps is not expected to be mandated in Japan until September 2015, institutional investors are starting to get ready for the implementation of these rules.
To help its clients meet existing clearing rules and prepare for future e-trading requirements, Tradeweb provides a range of derivatives trading solutions, and connectivity both to middleware vendors and major clearing houses globally, including, most recently, the JSCC.
Tradeweb clearing functionality allows swaps traders to choose, before a trade is executed, the clearing house and clearing member they would like to use to clear their trades. After each transaction is completed, details will be sent in real time to the selected CCP for clearing. This streamlines the entire trade workflow by reducing risk and improving operational efficiency.
“This trade in Japan marks another milestone in the evolution to a more transparent and efficient derivatives market,” says Andrew Bernard, managing director and head of Asia at Tradeweb. “Our focus continues to be on providing innovative tools so that our clients can efficiently trade swaps while benefiting from seamless trade processing and clearing connectivity.”
Hideo Nagamori, chief manager of The Bank of Tokyo Mitsubishi UFJ’s global markets trading division, says: “In the current environment, where increased market transparency and safety is a major global objective, we feel it is desirable that a fair and reliable trading structure is established through the use of electronic trading platforms, as this will enhance market efficiency and increase market participation. The Bank of Tokyo Mitsubishi UFJ, as a major market participant, is committed to supporting the healthy development of the global financial markets.”

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